Outsourcing Sourcing Strategy
Sourcing Strategy

Sourcing strategy defines why, what, when and how an organization should outsource. It outlines business strategies that are executed through outsourcing. It defines cost savings, operational excellence, and human resource strategy in a "multi-sourced environment".

At LMD Consulting, we help you work with leading Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO) companies from start to finish. Our sourcing strategy includes our recommendations on service level agreements (SLAs) and operating level agreements (OLAs) by which you can manage your extended enterprise.

Our Sourcing Management Framework focuses on the three areas of getting the most out of outsourcing:

VISION and BUSINESS ALIGNMENT – How does sourcing fit within your organization? Have you outsourced before and do you currently have a sourcing (not procurement) management office (SMO)?

FUNDING, BUDGETING and PRICING – What are your financial objectives of sourcing? Have you done an ROI analysis? Do you have the budget and pricing data points for your sourcing objectives?

STAFFING and ORGANIZATION – What are your plans with your human resources? Sourcing requires a change in the overall IT governance structure. How will training and transition be effected in your organization? Will there be any transfer of resources from your organization to external service providers (ESPs)?

Sourcing Strategy Framework

Sourcing Strategy